Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 184: To ask the Minister for Agriculture and Food her plans for the development of the beef, lamb and pig meat industries in the future; and if she will make a statement on the matter. [38635/05]

Mary Coughlan (Donegal South West, Fianna Fail)
Link to this: Individually | In context

Beef production is extremely valuable to the Irish economy with a €1.4 billion export value representing almost 25% of total Irish agri-food exports. In 2004, Ireland produced 560,000 tonnes of beef and exported 495,000 tonnes. Almost 90% of these exports went to EU markets with this trend continuing in 2005. The outlook for 2006 is for Irish beef production to increase by 5%, contrasting with a decreasing production trend throughout continental Europe. The overall EU beef market is again forecast to remain in deficit next year by approximately 350,000 tonnes. This will create a positive market environment and should maintain good demand for Irish beef in our key markets with good prices being achieved. The shift in recent years to EU markets for the vast bulk of our beef exports strengthens our position from a strategic point of view as an increased presence in this sophisticated high value market is seen as the key to the success of the beef industry in the long term.

The 2003 mid-term review of the Common Agricultural Policy has allowed Irish beef farmers to farm exclusively for the market as premia have been replaced with a single decoupled payment. Farmers can now specialise in enterprises at which they have a comparative advantage with no limiting forms of production save the supply and demand balance of the marketplace. Our ability to grow grass over a long growing season and our mild climate will ensure that we remain a significant producer of cattle in the future.

Third country markets also continue to play a role and my Department in co-operation with the Department of Foreign Affairs and Bord Bia continues to make every effort to increase the number of markets for Irish beef. Russia, Algeria and Egypt are important destinations for our beef while the Lebanon is an importer of live cattle from Ireland. Similar work is ongoing in regard to opportunities for trade with countries in the Gulf states, South Africa, Indonesia, the Philippines and other potential markets in which there are restrictions on Irish and EU beef due to BSE. I am committed to having the maximum number of international markets available to Irish beef and my Department will continue to work closely with the Department of Foreign Affairs and Bord Bia to achieve that aim.

I recently announced the commencement of a study of the sheep sector and its needs, in the context of our new premia-free environment. It is important to identify the changes that are needed in the various strategies to make them more effective in the future environment and to draw together a cohesive development plan that will put the industry on a solid footing in the post decoupling era. It is largely industry led and is being overseen by a steering group representing the main interests in the sector.

This study will cover all facets of the industry from farm production through to processing and marketing and will focus on economic and regulatory issues. The objective is to progress the competitiveness and profitable growth potential of the sheep sector in Ireland and avoid seasonal disparities such as occurred this year. I welcome this study and would be hopeful that it will bring stability and confidence to the sector with benefits for all concerned.

Producers in the pig sector are operating at a high level of efficiency. The Prospectus study, which reported in 2001, was a comprehensive examination of the factors relevant to the future prosperity of the sector, in particular its competitiveness on home and international markets. The key recommendation centred on the need for rationalisation of primary processing facilities. There has been a good degree of rationalisation of processing structures in the past couple of years and I believe the sector is well positioned to take on the challenges that lie ahead.

My Department is, and will continue to be, engaged in a wide range of activities that are critical to the ongoing development of the pig industry. These include national animal health programmes, the monitoring of compliance with food safety controls at production premises, the administration of production controls and certification for individual third country markets, and improving access to new markets. Pigmeat also features prominently on Bord Bia's programme of promotion on home and export markets.

Implementation of the nitrates directive presents challenges for the pig sector. In that context I have announced a suite of measures, for which the approval of the European Commission is awaited, to assist producers to comply with the directive. These include the extension of the farm waste management scheme to pig producers for the first time. Other elements include grant aid for specialised slurry handling and spreading equipment and dry feeding systems. Having enough land on which to spread manure is a related issue facing farmers. In that context I will be asking Teagasc to undertake a very active promotion campaign to demonstrate the nutrient value of slurry and the savings that farmers can achieve by substituting it for chemical fertiliser. I will be urging REPS planners to encourage their clients to use pig manure on their farms. I have also launched a new aid scheme this year, the pig welfare scheme, to facilitate compliance with new welfare standards for the housing of sows.

I am satisfied that the many measures outlined above will greatly assist the ongoing development of the beef, lamb and pig meat industries.